Pidilite Industries Limited Vs Union of India (Bombay High Court)
In Bombay High Court, a writ petition was filed under Article 226 of the Constitution of India challenging an Order-in-Original dated 5 February 2025 issued by the tax authorities. The petitioner sought quashing of the order primarily on the ground that it violated the principles of natural justice, as verification reports relied upon by the authorities were not provided to the petitioner before the order was passed.
The petitioner is a manufacturer of various chemical products, including adhesives, industrial resins, and construction chemicals. It was previously registered under the Central Sales Tax regime and later obtained registration under the Goods and Services Tax framework after the implementation of the Central Goods and Services Tax Act, 2017. Under Section 140 of the CGST Act, taxpayers are allowed to transition input tax credit from the earlier tax regime into the GST system.
The petitioner filed GST TRAN-1 and GST TRAN-2 declarations on 17 November 2017 to transition its input tax credit to the electronic credit ledger. In February 2018, tax authorities initiated an audit to verify the transition of CENVAT credit under Section 140 of the CGST Act read with Rule 117 of the CGST Rules. Between February 2018 and December 2021, extensive correspondence took place between the petitioner and the department, during which the petitioner claimed to have submitted all requested documents.
